Secured loans such as home loans offer you facilities such as balance transfers that allow you to transfer your outstanding due from your existing financial lender to a new financial company that offers advances at a much lower interest rate. Home loan transfer
provides you with several benefits, some of which are shared below.
Lower interest rate
As mentioned above, home loan balance transfers help you to shift your remaining principal amount to another lender that sanctions advances at a lower interest rate. Reduced interest rate helps making your EMIs affordable and reduces the financial burden.
Top up loans
As an additional feature, financial companies offer top-up loans over and above the principal amount on a home loan transfer. With home loan top-ups, you can gather further financial backing to cater to various financial emergencies such as medical, educational, home renovation, etc. Moreover, you can also claim tax benefits under Section 24(b) against the amount paid towards the interest.
Improves credit score
One of the primary reasons why you should choose home loan balance transfer is that it reduces the interest rate and makes EMIs affordable. That allows you to follow your repayment plan and create a healthy credit history.
Besides, you also get to enjoy zero pre-payment and foreclosure fees against a balance transfer. Furthermore, it is advisable to opt for a transfer at the initial stages of your repayment tenor, as it will help you save a substantial sum from the payable interest.